RadioandMusic
| 09 Apr 2020
Sony Music segment sales increased 1.5 percent in Q2-2015

BENGALURU: Sony Corporation (Sony) reported sales of ? 1,901.5 billion (US$ 17,445 million) in Q2-2015, (quarter ended September 30, 2014, current quarter) an increase of 7.2 percent compared to ? 1774.2 billion in Q2-2014. An operating loss of ? 85.6 billion yen (US$ 785 million) was recorded in the current quarter, compared to operating income of 13.9 billion yen in Q2-2014.

Sony says that increase in sales was primarily due to a significant increase in its games and network services segment  G&NS) sales, reflecting the contribution of the PlayStation 4 (PS4), a significant increase in devices segment sales primarily due to the strong performance of image sensors, as well as the favourable impact of foreign exchange rates. This increase was partially offset by a significant decrease in sales in all other, primarily related to Sony’s exit from the PC business, explains the company.

Music

Music segment sales increased 1.5 percent in Q2-2015 to ? 116.8 billion (US$ 1,071 million) from ? 115 billion. The decrease in sales on a constant currency basis is primarily due to lower music publishing and recorded music sales, partially offset by higher visual media and platform sales. On a constant currency basis, sales of music publishing decreased primarily due to a decrease in revenue outside of the US recorded music sales decreased slightly as the worldwide decline in physical and digital download sales were partially offset by higher digital streaming revenues. Visual Media and Platform sales increased mainly due to higher sales of animation products. Best-selling titles included Barbra Streisand’s ‘Partners’, Chris Brown’s ’X’ and Sia’s ‘1000 Forms of Fear’.

Operating income increased ?2.1 billion in Q2-2015 to ? 11.8 billion (US$ 108 million). This increase was primarily due to an improvement in equity in net income (loss) from EMI Music publishing and a reduction in selling, general and administrative expenses.

Home Entertainment & Sound (HE&S)

HE&S sales increased 7 per cent year-on-year to ? 282.4 billion (US$ 2,590 million) from ? 263.8 billion in Q2-2014. This increase was primarily due to a significant increase in sales of televisions and the favourable impact of foreign exchange rates. The company says that unit sales of LCD televisions increased significantly in Europe, North America, and Asia-Pacific, partially offset by a significant decrease in unit sales in Latin America. Audio and video category sales decreased mainly due to a decrease in sales in Latin America reflecting adverse market conditions.

Operating income of ? 8.0 billion (73 million U.S. dollars) was recorded, compared to an operating loss of ? 12.1 billion in the same quarter of the previous fiscal year. This improvement was primarily due to cost reductions and an improvement in the product mix reflecting the shift to high value-added models, partially offset by a decrease in the average selling price of LCD televisions.

Sony reveals that television sales increased 14.7 per cent year-on-year to ? 199.7 billion (US$ 1,832 million) in Q2-2015. This significant increase was primarily due to the above-mentioned significant increase in unit sales of LCD televisions, and the favourable impact of foreign exchange rates.

Operating income of ? 4.9 billion (US$ 45 million) was recorded, compared to an operating loss of ? 9.3 billion in Q2-2014. This improvement was primarily due to cost reductions and an improvement in the product mix of LCD televisions reflecting a shift to high value-added models, partially offset by a decrease in the average selling price.